REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
(The Nasdaq Global Market) | ||||
(The Nasdaq Global Market) |
* | Not for trading, but only in connection with the listing on The Nasdaq Global Market of American depositary shares. |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ☒ | Emerging growth company |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
International Financial Reporting Standards as issued |
Other ☐ | |||||
by the International Accounting Standards Board ☐ |
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• | “ADSs” refers to our American depositary shares, each of which represents seven Class A ordinary shares; |
• | “China” or the “PRC” refers to the People’s Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan; |
• | “Class A ordinary shares” refers to our Class A ordinary shares, par value US$0.000125 per share; |
• | “Class B ordinary shares” refers to our Class B ordinary shares, par value US$0.000125 per share; |
• | “Jimu Group” refers to our predecessor and its subsidiaries and variable interest entities that operate its peer-to-peer |
• | “our predecessor” refers to Jimu Holdings Limited, formerly known as Pintec Holdings Limited; |
• | “registered users” refers to individuals who have registered on our system with their name, government-issued identification number and mobile phone number |
• | “RMB” or “Renminbi” refers to the legal currency of China; |
• | “shares” or “ordinary shares” refers to our Class A ordinary shares and Class B ordinary shares; |
• | “U.S. GAAP” refers to generally accepted accounting principles in the United States; |
• | “US$,” “U.S. dollars,” “$,” or “dollars” refers to the legal currency of the United States; |
• | “we,” “us,” “our company,” “our,” or “Pintec” refers to Pintec Technology Holdings Limited, its subsidiaries, and, in the context of describing our operations and consolidated financial information, its variable interest entities in China; and |
• | “WFOE” or “WFOEs” refers to our wholly foreign-invested enterprises in China, including Sky City (Beijing) Technology Co., Ltd. and Pintec (Beijing) Technology Co., Ltd. |
• | our goals and strategies; |
• | our future business development, financial condition and results of operations; |
• | expected changes in our revenues, costs or expenditures; |
• | our expectations regarding demand for and market acceptance of our services and solutions; |
• | our expectations regarding our relationships with funding sources and customers; |
• | competition in our industries; and |
• | developments in government policies, laws and regulations relating to our industries. |
Item 1. |
Identity of Directors, Senior Management and Advisers |
Item 2. |
Offer Statistics and Expected Timetable |
Item 3. |
Key Information |
As of December 31, 2020 |
||||||||||||||||||||||||||||
Parent |
VIEs |
WFOEs |
Other Subsidiaries |
VIE- Elimination |
Elimination Adjustments |
Consolidated Total |
||||||||||||||||||||||
Condensed Consolidating Schedule of Balance Sheets |
|
|||||||||||||||||||||||||||
Cash and cash equivalents |
3,467 | 173,167 | 12,780 | 187,746 | — | — | 377,160 | |||||||||||||||||||||
Restricted time deposits |
— | 1,213 | — | 136,007 | — | — | 137,220 | |||||||||||||||||||||
restricted cash-non current |
— | 7,964 | — | — | — | — | 7,964 | |||||||||||||||||||||
Financing receivables, net |
— | 73,618 | — | — | — | — | 73,618 | |||||||||||||||||||||
Accounts receivables, net |
— | 47,795 | 478 | 2,706 | — | — | 50,979 | |||||||||||||||||||||
Inter-group balance due from VIEs and subsidiaries |
305,780 | 1,283,151 | 2,348,353 | 1,866,572 | (1,283,151 | ) | (4,520,705 | ) | — | |||||||||||||||||||
Other assets |
352 | 136,687 | 45,892 | 568,845 | - | (420,213 | ) | 331,563 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
309,599 |
1,723,595 |
2,407,503 |
2,761,876 |
(1,283,151 |
) |
(4,940,918 |
) |
978,504 |
|||||||||||||||||||
Inter-group balance due to VIEs and subsidiaries |
415,572 | 2,271,923 | 1,849,527 | 2,128,715 | (2,271,923 | ) | (4,393,814 | ) | — | |||||||||||||||||||
Amounts due to related parties |
— | 271,419 | — | — | — | — | 271,419 | |||||||||||||||||||||
Convertible loan |
— | — | — | 400,000 | — | — | 400,000 | |||||||||||||||||||||
Other liabilities |
12,964 | 204,978 | 8,822 | 35,508 | — | (3,237 | ) | 259,035 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Liabilities |
428,536 |
2,748,320 |
1,858,349 |
2,564,223 |
(2,271,923 |
) |
(4,397,051 |
) |
930,454 |
|||||||||||||||||||
Total Pintec’s (Deficit)/Equity |
(118,937 | ) | (1,043,836 | ) | 549,154 | 49,777 | 988,772 | (543,867 | ) | (118,937 | ) | |||||||||||||||||
Non-controlling interests |
— | 19,111 | — | 147,876 | — | — | 166,987 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total (Deficit)/Equity |
(118,937 |
) |
(1,024,725 |
) |
549,154 |
197,653 |
988,772 |
(543,867 |
) |
48,050 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021 |
||||||||||||||||||||||||||||
Parent |
VIEs |
WFOEs |
Other Subsidiaries |
VIE-Elimination |
Elimination Adjustments |
Consolidated Total |
||||||||||||||||||||||
Condensed Consolidating Schedule of Balance Sheets |
|
|||||||||||||||||||||||||||
Cash and cash equivalents |
1,255 | 41,638 | 623 | 174,385 | — | — | 217,901 | |||||||||||||||||||||
Restricted time deposits |
— | 1,468 | — | — | — | — | 1,468 | |||||||||||||||||||||
restricted cash-non current |
— | 5,417 | — | — | — | — | 5,417 | |||||||||||||||||||||
Financing receivables, net |
— | 92,772 | — | 4,999 | — | — | 97,771 | |||||||||||||||||||||
Accounts receivables, net |
— | 36,620 | 180 | 54 | — | — | 36,854 | |||||||||||||||||||||
Inter-group balance due from VIEs and subsidiaries |
156,985 | 1,304,761 | 2,204,376 | 1,773,980 | (1,304,761 | ) | (4,135,341 | ) | — | |||||||||||||||||||
Other assets |
181 | 129,334 | 141,229 | 625,032 | — | (493,954 | ) | 401,822 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
158,421 |
1,612,010 |
2,346,408 |
2,578,450 |
(1,304,761 |
) |
(4,629,295 |
) |
761,233 |
|||||||||||||||||||
Inter-group balance due to VIEs and subsidiaries |
379,533 | 2,337,454 | 1,792,437 | 1,987,265 | (2,337,454 | ) | (4,159,235 | ) | — | |||||||||||||||||||
Amounts due to related parties |
— | 289,936 | — | — | — | — | 289,936 | |||||||||||||||||||||
Convertible loan |
— | — | — | 400,000 | — | — | 400,000 | |||||||||||||||||||||
Other liabilities |
3,817 | 84,511 | 7,256 | 41,716 | — | (974 | ) | 136,326 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Liabilities |
383,350 |
2,711,901 |
1,799,693 |
2,428,981 |
(2,337,454 |
) |
(4,160,209 |
) |
826,262 |
|||||||||||||||||||
Total Pintec’s (Deficit)/Equity |
(224,929 | ) | (1,117,511 | ) | 546,715 | 7,189 | 1,032,693 | (469,086 | ) | (224,929 | ) | |||||||||||||||||
Non-controlling interests |
— | 17,620 | — | 142,280 | — | — | 159,900 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total (Deficit)/Equity |
(224,929 |
) |
(1,099,891 |
) |
546,715 |
149,469 |
1,032,693 |
(469,086 |
) |
(65,029 |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2019 |
||||||||||||||||||||||||||||
Parent |
VIEs |
WFOEs |
Other Subsidiaries |
VIE- Elimination |
Elimination Adjustments |
Consolidated Total |
||||||||||||||||||||||
Condensed Consolidating Schedule of Results of Operations |
|
|||||||||||||||||||||||||||
Revenues |
— | 1,280,814 | 403,001 | 4,953 | (7,871 | ) | (395,661 | ) | 1,285,236 | |||||||||||||||||||
Cost of revenues |
— | (756,506 | ) | (7,721 | ) | (1,387 | ) | 561 | (4,635 | ) | (769,688 | ) | ||||||||||||||||
Operating expenses |
(210,829 | ) | (1,241,855 | ) | (202,267 | ) | (28,318 | ) | 398,798 | 40,488 | (1,243,983 | ) | ||||||||||||||||
Loss from operations |
(210,829 | ) | (717,547 | ) | 193,013 | (24,752 | ) | 391,488 | (359,808 | ) | (728,435 | ) | ||||||||||||||||
Other (expenses)/income |
(258 | ) | (218,511 | ) | 1,893 | 8,015 | 28,774 | 4,000 | (176,087 | ) | ||||||||||||||||||
Share of loss from subsidiaries |
(694,808 | ) | — | — | — | — | 694,808 | — | ||||||||||||||||||||
(Loss)/income before income taxes |
(905,895 |
) |
(936,058 |
) |
194,906 |
(16,737 |
) |
420,262 |
339,000 |
(904,522 |
) | |||||||||||||||||
Income tax (expense) benefit |
— | (4,995 | ) | (61 | ) | 3,088 | — | — | (1,968 | ) | ||||||||||||||||||
Net (loss)/income |
(905,895 |
) |
(941,053 |
) |
194,845 |
(13,649 |
) |
420,262 |
339,000 |
(906,490 |
) | |||||||||||||||||
Less: net loss attributable to non-controlling interests |
— | (595 | ) | — | — | — | — | (595 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net (loss)/ income attributable to Pintec’s shareholders |
(905,895 |
) |
(940,458) |
194,845 |
(13,649) |
420,262 |
339,000 |
(905,895 |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2019 |
||||||||||||||||||||||||||||
Parent |
VIEs |
WFOEs |
Other Subsidiaries |
VIE- Elimination |
Elimination Adjustments |
Consolidated Total |
||||||||||||||||||||||
Condensed Consolidating Schedule of Cash Flows |
|
|||||||||||||||||||||||||||
Net cash (used in)/provided by operating activities |
(7,261 | ) | (112,642 | ) | 447,673 | (152,691 | ) | 517,493 | (517,493 | ) | 175,079 | |||||||||||||||||
Net cash used in investing activities |
(56,903 | ) | (165,957 | ) | (511,800 | ) | (63,199 | ) | — | 259,157 | (538,702 | ) | ||||||||||||||||
Net cash provided by/(used in) financing activities |
26 | 136,910 | (12,711 | ) | 359,304 | (50,004 | ) | (209,153 | ) | 224,372 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
2,552 | — | (162 | ) | 7,724 | — | — | 10,114 | ||||||||||||||||||||
Net (decrease)/increase in cash and cash equivalents, and restricted cash |
(61,586 | ) | (141,689 | ) | (77,000 | ) | 151,138 | 467,489 | (467,489 | ) | (129,137 | ) | ||||||||||||||||
Cash and cash equivalents, and restricted cash at the beginning of year |
69,194 | 239,946 | 79,614 | 321,287 | — | — | 710,041 | |||||||||||||||||||||
Cash and cash equivalents, and restricted cash at the end of year |
7,608 | 98,257 | 2,614 | 472,425 | — | — | 580,904 |
For the year ended December 31, 2020 |
||||||||||||||||||||||||||||
Parent |
VIEs |
WFOEs |
Other Subsidiaries |
VIE-Elimination |
Elimination Adjustments |
Consolidated Total |
||||||||||||||||||||||
Condensed Consolidating Schedule of Results of Operations |
|
|||||||||||||||||||||||||||
Revenues |
— | 358,605 | 80,857 | 21,700 | (6,001 | ) | (76,897 | ) | 378,264 | |||||||||||||||||||
Cost of revenues |
— | (284,185 | ) | (2,193 | ) | (2,217 | ) | 19 | 2,802 | (285,774 | ) | |||||||||||||||||
Operating expenses |
(27,665 | ) | (201,177 | ) | (98,827 | ) | (53,576 | ) | 46,802 | 35,114 | (299,329 | ) | ||||||||||||||||
Loss from operations |
(27,665 | ) | (126,757 | ) | (20,163 | ) | (34,093 | ) | 40,820 | (38,981 | ) | (206,839 | ) | |||||||||||||||
Other (expenses)/income |
(10,666 | ) | (6,044 | ) | (17,278 | ) | 9,796 | 30,892 | (46,805 | ) | (40,105 | ) | ||||||||||||||||
Share of loss from subsidiaries |
(255,604 | ) | — | — | — | — | 255,604 | — | ||||||||||||||||||||
Loss before income taxes |
(293,935 |
) |
(132,801 |
) |
(37,441 |
) |
(24,297 |
) |
71,712 |
169,818 |
(246,944 |
) | ||||||||||||||||
Income tax (expense)/benefit |
— | (50,676 | ) | — | 1,480 | — | — | (49,196 | ) | |||||||||||||||||||
Net loss |
(293,935 |
) |
(183,477 |
) |
(37,441 |
) |
(22,817 |
) |
71,712 |
169,818 |
(296,140 |
) | ||||||||||||||||
Less: net loss attributable to non-controlling interests |
— | (82 | ) | — | (2,123 | ) | — | — | (2,205 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net loss attributable to Pintec’s shareholders |
(293,935 |
) |
(183,395 |
) |
(37,441 |
) |
(20,694 |
) |
71,712 |
169,818 |
(293,935 |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2020 |
||||||||||||||||||||||||||||
Parent |
VIEs |
WFOEs |
Other Subsidiaries |
VIE-Elimination |
Elimination Adjustments |
Consolidated Total |
||||||||||||||||||||||
Condensed Consolidating Schedule of Cash Flows |
|
|||||||||||||||||||||||||||
Net cash (used in)/provided by operating activities |
(20,972 | ) | 480,790 | (58,094 | ) | (344,761 | ) | (352,243 | ) | 352,243 | 56,963 | |||||||||||||||||
Net cash provided by/(used in) investing activities |
69,327 | 289,956 | (710 | ) | (157,510 | ) | — | (8,444 | ) | 192,619 | ||||||||||||||||||
Net cash provided by/(used in) financing activities |
20 | (686,659 | ) | 65,209 | 326,348 | 20,000 | (11,557 | ) | (286,639 | ) | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
(52,516 | ) | — | 3,761 | 27,252 | — | — | (21,503 | ) | |||||||||||||||||||
Net (decrease)/increase in cash and cash equivalents, and restricted cash |
(4,141 | ) | 84,087 | 10,166 | (148,671 | ) | (332,243 | ) | 332,242 | (58,560 | ) | |||||||||||||||||
Cash and cash equivalents, and restricted cash at the beginning of year |
7,608 | 98,257 | 2,614 | 472,424 | (9,647 | ) | 9,648 | 580,904 | ||||||||||||||||||||
Cash and cash equivalents, and restricted cash at the end of year |
3,467 | 182,344 | 12,780 | 323,753 | — | — | 522,344 |
For the year ended December 31, 2021 |
||||||||||||||||||||||||||||
Parent |
VIEs |
WFOEs |
Other Subsidiaries |
VIE-Elimination |
Elimination Adjustments |
Consolidated Total |
||||||||||||||||||||||
Condensed Consolidating Schedule of Results of Operations |
|
|||||||||||||||||||||||||||
Revenues |
— | 148,957 | 14,840 | 21,243 | (1,074 | ) | (10,726 | ) | 173,240 | |||||||||||||||||||
Cost of revenues |
— | (82,240 | ) | (1,845 | ) | (8,648 | ) | 3,069 | (56 | ) | (89,720 | ) | ||||||||||||||||
Operating expenses |
(12,574 | ) | (38,335 | ) | (76,390 | ) | (37,044 | ) | 8,800 | 686 | (154,857 | ) | ||||||||||||||||
Loss from operations |
(12,574 | ) | 28,382 | (63,395 | ) | (24,449 | ) | 10,795 | (10,096 | ) | (71,337 | ) | ||||||||||||||||
Other income/(expenses) |
3,292 | 4,996 | (2,976 | ) | (25,234 | ) | — | (10,689 | ) | (30,611 | ) | |||||||||||||||||
Share of loss from subsidiaries |
(92,322 | ) | — | — | — | — | 92,322 | — | ||||||||||||||||||||
(Loss)/income before income taxes |
(101,604 |
) |
33,378 |
(66,371 |
) |
(49,683 |
) |
10,795 |
71,537 |
(101,948 |
) | |||||||||||||||||
Income tax expense |
(125 | ) | (3,456 | ) | — | (3,415 | ) | — | 124 | (6,872 | ) | |||||||||||||||||
Net (loss)/income |
(101,729 |
) |
29,922 |
(66,371 |
) |
(53,098 |
) |
10,795 |
71,661 |
(108,820 |
) | |||||||||||||||||
Less: net loss attributable to non-controlling interests |
— | (1,491 | ) | — | (5,600 | ) | — | — | (7,091 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net (loss)/income attributable to Pintec’s shareholders |
(101,729 |
) |
31,413 |
(66,371 |
) |
(47,498 |
) |
10,795 |
71,661 |
(101,729 |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2021 |
||||||||||||||||||||||||||||
Parent |
VIEs |
WFOEs |
Other Subsidiaries |
VIE-Elimination |
Elimination Adjustments |
Consolidated Total |
||||||||||||||||||||||
Condensed Consolidating Schedule of Cash Flows |
|
|||||||||||||||||||||||||||
Net cash (used in)/provided by operating activities |
(11,840 | ) | 18,945 | 25,521 | (64,808 | ) | 63,642 | (63,642 | ) | (32,182 | ) | |||||||||||||||||
Net cash provided by/(used in) investing activities |
14,952 | (19,956 | ) | (101,608 | ) | (76,783 | ) | — | 63,931 | (119,464 | ) | |||||||||||||||||
Net cash provided by/(used in) financing activities |
1 | (132,810 | ) | 63,930 | 476 | — | (63,931 | ) | (132,334 | ) | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
(5,325 | ) | — | — | (8,253 | ) | — | — | (13,578 | ) | ||||||||||||||||||
Net decrease in cash and cash equivalents, and restricted cash |
(2,212 | ) | (133,821 | ) | (12,157 | ) | (149,368 | ) | 63,642 | (63,642 | ) | (297,558 | ) | |||||||||||||||
Cash and cash equivalents, and restricted cash at the beginning of year |
3,467 | 182,344 | 12,780 | 323,753 | — | — | 522,344 | |||||||||||||||||||||
Cash and cash equivalents, and restricted cash at the end of year |
1,255 | 48,523 | 623 | 174,385 | — | — | 224,786 |
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
(in thousands) |
||||||||||||
Cash paid by parent company to equity owned subsidiaries |
203,956 | — | — | |||||||||
Cash received by parent company from equity owned subsidiaries |
— | 74,238 | 14,952 | |||||||||
Cash paid by VIEs to equity owned subsidiaries |
292,553 | 306,522 | 642,373 | |||||||||
Cash received by VIEs from equity owned subsidiaries |
617,552 | 819,348 | 584,159 | |||||||||
Cash paid by WFOEs to equity owned subsidiaries |
925,250 | 284,890 | 207,161 | |||||||||
Cash received by WFOEs from equity owned subsidiaries |
737,574 | 111,168 | 293,859 | |||||||||
Cash paid by VIEs to WFOEs |
1,293,019 | 184,078 | 18,199 | |||||||||
Cash received by VIEs from WFOEs |
2,272,237 | 91,442 | 18,369 |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Selected Consolidated Statements of Operations and Comprehensive Loss Data: |
||||||||||||||||
Revenues: |
||||||||||||||||
Technical service fees |
1,077,760 | 330,665 | 115,272 | 18,088 | ||||||||||||
Installment service fees |
187,359 | 42,707 | 16,949 | 2,660 | ||||||||||||
Wealth management service fees and others |
20,117 | 4,892 | 41,019 | 6,437 | ||||||||||||
Total revenues |
1,285,236 |
378,264 |
173,240 |
27,185 |
||||||||||||
Cost of revenues: (1) |
||||||||||||||||
Funding cost |
(51,759 | ) | (16,525 | ) | (583 | ) | (91 | ) | ||||||||
(Provision)/Reversal for credit losses |
(33,942 | ) | (45,090 | ) | 1,934 | 303 | ||||||||||
Origination and servicing cost |
(290,398 | ) | (100,760 | ) | (94,186 | ) | (14,780 | ) | ||||||||
(Cost on)/Recover of guarantee |
(193,426 | ) | (100,347 | ) | 4,689 | 736 | ||||||||||
Service cost charged by Jimu Group-related party |
(200,163 | ) | (23,052 | ) | (1,574 | ) | (247 | ) | ||||||||
Cost of revenues |
(769,688 |
) |
(285,774 |
) |
(89,720 |
) |
(14,079 |
) | ||||||||
Gross profit |
515,548 |
92,490 |
83,520 |
13,106 |
||||||||||||
Operating expenses (1) |
||||||||||||||||
Sales and marketing expenses |
(69,593 | ) | (44,697 | ) | (40,936 | ) | (6,424 | ) | ||||||||
General and administrative expenses |
(1,095,311 | ) | (147,753 | ) | (88,111 | ) | (13,827 | ) | ||||||||
Research and development expenses |
(79,079 | ) | (37,521 | ) | (22,714 | ) | (3,564 | ) | ||||||||
Impairment loss of goodwill and intangible assets |
— | (69,358 | ) | (3,096 | ) | (486 | ) | |||||||||
Total operating expenses |
(1,243,983 |
) |
(299,329 |
) |
(154,857 |
) |
(24,301 |
) | ||||||||
Operating loss |
(728,435 |
) |
(206,839 |
) |
(71,337 |
) |
(11,195 |
) | ||||||||
Loss from disposal of a subsidiary |
— | — | (5,498 | ) | (863 | ) | ||||||||||
Loss from equity method investments |
(8,149 | ) | (11,523 | ) | — | — | ||||||||||
Impairment on prepayment for long-term investment |
(200,000 | ) | — | — | — | |||||||||||
Impairment loss on equity investment |
— | (15,908 | ) | — | — | |||||||||||
Interest expenses, net |
(19,017 | ) | (34,332 | ) | (32,453 | ) | (5,093 | ) | ||||||||
Other income, net |
7,923 | 21,658 | 7,340 | 1,152 | ||||||||||||
Interest income from related parties |
43,156 | — | — | — | ||||||||||||
Loss before income tax expense |
(904,522 |
) |
(246,944 |
) |
(101,948 |
) |
(15,999 |
) | ||||||||
Income tax expense |
(1,968 | ) | (49,196 | ) | (6,872 | ) | (1,078 | ) | ||||||||
Net loss |
(906,490 |
) |
(296,140 |
) |
(108,820 |
) |
(17,077 |
) | ||||||||
Other comprehensive income/(loss) |
11,876 | (22,977 | ) | (10,793 | ) | (1,692 | ) | |||||||||
Total comprehensive loss |
(894,614 |
) |
(319,117 |
) |
(119,613 |
) |
(18,769 |
) |
(1) | Share-based compensation expenses are allocated in operating expense items as follows: |
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Share-based compensation expenses included in |
||||||||||||||||
Cost of revenues |
(250 | ) | (18 | ) | 13 | 2 | ||||||||||
Sales and marketing expenses |
(1,565 | ) | (3,182 | ) | (354 | ) | (56 | ) | ||||||||
General and administrative expenses |
(12,785 | ) | (7,054 | ) | (2,370 | ) | (372 | ) | ||||||||
Research and development expenses |
(3,247 | ) | (1,644 | ) | (1,082 | ) | (170 | ) |
As of December 31 |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Selected Consolidated Balance Sheets Data: |
||||||||||||||||
Cash and cash equivalent |
102,755 | 377,160 | 217,901 | 34,193 | ||||||||||||
Restricted cash |
382,695 | 137,220 | 1,468 | 230 | ||||||||||||
Short-term financing receivables, net |
430,387 | 70,783 | 97,200 | 15,252 | ||||||||||||
Current and noncurrent amounts due from related parties, net |
10,064 | 30 | 5,455 | 856 | ||||||||||||
Total assets |
1,560,599 |
978,504 |
761,233 |
119,453 |
||||||||||||
Short-term borrowings |
320,000 | 130,000 | — | — | ||||||||||||
Short-term funding debts |
300,212 | 2,841 | 30 | 5 | ||||||||||||
Current and noncurrent amounts due to related parties |
10,191 | 271,419 | 289,936 | 45,497 | ||||||||||||
Financial guarantee liabilities |
101,933 | 20,260 | 13,736 | 2,155 | ||||||||||||
Total liabilities |
1,201,879 |
930,454 |
826,262 |
129,657 |
||||||||||||
Total equity/(deficit) |
358,720 |
48,050 |
(65,029 |
) |
(10,204 |
) |
A. |
[Reserved] |
B. |
Capitalization and Indebtedness |
C. |
Reasons for the Offer and Use of Proceeds |
D. |
Risk Factors |
• | We have a limited operating history, which makes it difficult to evaluate our future prospects. |
• | Regulatory uncertainties relating to consumer finance in China could harm our business, financial condition and results of operations. |
• | We face credit risks in most funding situations. |
• | Limitations on credit enhancement may adversely affect our access to funding. |
• | We may be deemed to operate a financing guarantee business by the PRC regulatory authorities. |
• | The current arrangements with certain of our financial partners and borrowers may have to be modified to comply with existing or future laws or regulations. |
• | Limitations on interest and fees that may be charged to borrowers may adversely affect our ability to collect fees. |
• | Regulatory uncertainties relating to campus online lending may materially and adversely affect our business and results of operations. |
• | Failure of other technology enablement platforms for the financial service industry or damage to the reputation of other platforms with similar business models may materially and adversely affect our business and results of operations. |
• | The trading price of our ADSs is likely to be volatile due to publicity regarding the consumer finance industry and the evolving regulatory environment governing this industry in China. |
• | Our business has been and is likely to continue to be materially adversely affected by the COVID-19 pandemic. |
• | If the PRC government deems that the contractual arrangements in relation to our variable interest entities and their subsidiaries do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations. |
• | We rely on contractual arrangements with our variable interest entities and their shareholders, for a significant portion of our business operations, which may not be as effective as direct ownership in providing operational control. |
• | Any failure by our variable interest entities or their respective shareholders to perform their obligations under our contractual arrangements with them would have a material adverse effect on our business. |
• | Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on our business, financial conditions and results of operations. |
• | Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protections available to us. |
• | Because all of our operations are in China, our business is subject to the complex and rapidly evolving laws and regulations there. The Chinese government may exercise significant oversight and discretion over the conduct of our business and may intervene in or influence our operations at any time, which could result in a material change in our operations and/or the value of our ADSs. |
• | We are subject to extensive and evolving legal system in the PRC, non-compliance with which, or changes in which, may materially and adversely affect our business and prospects, and may result in a material change in our operations and/or the value of our ADSs or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our ADSs to significantly decline or be worthless. |
• | The approval of and the filing with the CSRC or other PRC government authorities may be required in connection with our future offshore offerings under PRC law, and, if required, we cannot predict whether or for how long we will be able to obtain such approval or complete such filing. |
• | If the PCAOB, is unable to inspect our auditors as required under the Holdings Foreign Companies Accountable Act, the SEC will prohibit the trading of our ADSs. A trading prohibition may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct inspections of our auditors deprives our investors of the benefits of such inspections. |
• | The trading price of our ADSs is likely to be volatile, which could result in substantial losses to investors. |
• | The sale or availability for sale of substantial amounts of our ADSs could adversely affect their market price. |
• | Our dual-class share structure with different voting rights will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A ordinary shares and ADSs may view as beneficial. |
• | expand the network of our business partners and financial partners; |
• | provide diversified and distinguishable services and solutions to financial service providers; |
• | enhance our data analysis and risk management capabilities; |
• | navigate an uncertain and evolving regulatory environment; |
• | anticipate and adapt to changing market conditions, including technological developments and changes in competitive landscape; |
• | diversify our funding sources; |
• | maintain a reliable, secure, high-performance and scalable technology infrastructure; |
• | attract, retain and motivate talented employees; and |
• | improve our operational efficiency. |
• | our credit assessment models may not be accurate; |
• | we may fail to predict market demand accurately and to provide financial services that meet this demand in a timely fashion; |
• | business partners and financial partners using our platforms may not like, find useful or agree with any changes; |
• | there may be defects, errors or failures on our platforms; |
• | there may be negative publicity about our financial services or our platforms’ performance or effectiveness; and |
• | there may be competing services or solutions introduced or anticipated to be introduced by our competitors. |
• | third-party attempts to fraudulently induce employees or customers into disclosing sensitive information such as usernames, passwords or other information to gain access to our user’ data, our data or our IT systems; |
• | efforts by individuals or groups of hackers and sophisticated organizations; |
• | cyberattacks on our internally built infrastructure; |
• | vulnerabilities resulting from enhancements and upgrades to our existing solutions; |
• | vulnerabilities in third-party infrastructure and systems and applications that our solutions operate in conjunction with or are dependent on; |
• | vulnerabilities existing within newly acquired or integrated technologies and infrastructure; |
• | attacks on, or vulnerabilities in, the many different underlying networks and services that power the internet that our solutions depend on, most of which are not under our control; and |
• | employee or contractor errors or intentional acts that compromise our security systems. |
• | vulnerabilities in third-party infrastructure and systems and applications that our solutions operate in conjunction with or are dependent on; |
• | vulnerabilities existing within newly acquired or integrated technologies and infrastructure; |
• | attacks on, or vulnerabilities in, the many different underlying networks and services that power the internet that our solutions depend on, most of which are not under our control; and |
• | employee or contractor errors or intentional acts that compromise our security systems. |